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Funding

Congratulations to both you and your child and welcome to COSTEP. You’ve spent the last twelve years preparing for your child to take the next step, going to college. It’s amazing how fast the time flies by and, at this point, you’re probably very excited. You may have an uneasy feeling about how you’re going to pay for your child’s college education.

What Is Federal Student Aid?

Federal student aid is financial assistance through the U.S. Department of Education that’s available to you if your child is enrolled in ??an eligible program?? as a regular student participating in the federal student aid programs.

Who Is Eligible for Federal Student Aid?

Eligibility for federal student aid is based on your financial need and several other factors listed below. Your financial need is determined from the details you provide on the FAFSA.

Basic Eligibility Requirements

  1. Your student must demonstrate financial need (except for certain loans)
  2. You and your student must be a U.S. citizen or eligible non-citizen* each with a valid Social Security number (SSN).
  3. Your student must be working towards a degree or certificate in an eligible program.*
  4. Your student must show, by one of the following means, that they are qualified to obtain a postsecondary education:
    • Have a high school diploma or GED

    • Pass an approved Ability-To-Benefit* (ATB) test if they don’t have a diploma or GED. (A school can administer this test to determine whether they can benefit from the education offered at that school.)
    • Meet other standards established by the state of Texas and approved by the U.S. Department of Education.
    • Your student must register (if they haven’t already) with the Selective Service, if they’re a male between the ages of 18-25.
    • Your student must maintain satisfactory academic progress* once in school.

Starting the Loan Process

Get Your PIN!

The first item of business is to get your student a Personal Identification Number (PIN) from the federal government by logging on to the U.S. Department of Education’s website, pin.ed.gov. A PIN number lets your student apply, “sign” the online FAFSA, make corrections to the application information and more. They can’t proceed without it. By the way you, as a parent, will need your own PIN, too!

Collect Financial Information

Now that you’ve secured a PIN NUMBER for both you and your student, you’ll have to fill out a FAFSA application. (The federal government regulates the primary features of loan programs for students going to college.) You’ll need to collect documents to apply for Federal Student Aid. Here’s a list of the documents that you will need:

  1. Both your and your student’s Social Security numbers (if your student is a dependent student)
  2. Both your and your student’s driver’s licenses (if available)
  3. Last year’s W-2 forms and other records of money earned by you and your student, (if your student is a dependent student) If you or your student’s tax returns are not completed at the time you apply, you and your student will need to estimate the tax information, apply, and correct the information later.
  4. Any foreign tax returns (or tax return from Puerto Rico)
  5. Both your and your student’s previous year untaxed income records. (Example: Social Security payments, Temporary Assistance to Needy Families, welfare or veterans benefits records.)
  6. Both your and your student’s current bank statements; business and investment mortgage information; business and farm records, stocks, bonds, and other investment records.
  7. Your and your student’s alien registration number or permanent residence card (if you are not a U.S. citizen)

Complete the FAFSA

Complete the online Free Application for Federal Student Aid (FAFSA) between January 1 and July 2. No exceptions to either date. Apply as soon as possible after January 1 to meet school and state aid deadlines. Note: Your student might be able to get financial aid from the state of Texas, the schools that your student has applied to or a private scholarship. Research non-federal aid early in the process. Be sure to meet all application deadlines. Click here to complete the FAFSA form now.

Review Your SAR, Get Your EFC

Your student will receive a report within a few weeks of submitting his or her online application. The report will be mailed to your student. Review the Student Aid Report (SAR) - the result of the FAFSA application. If necessary, make changes or corrections and resubmit your student’s SAR for reprocessing. Your complete, correct SAR will contain what is known as your Expected Family Contribution (EFC) - the number used to determine your student’s federal student aid eligibility.

Finishing Touches

Make sure the financial aid offices at the colleges your student plans to attend have all the information needed to determine your student’s eligibility. For instance, your student will need their SAR when meeting with the financial aid office(s). If the school you want to attend is not listed on your FAFSA, you’ll need to submit your SAR to that school for processing by their last day of enrollment or by September 17, whichever comes first. (Be sure your student knows the last day of enrollment at the school(s) she wishes to attend - that date could be earlier than September 17th! If your student hasn’t scheduled an appointment with the college or university’s financial aid department, have your student set an appointment now. Your student can apply to various schools; however, your student must meet with the financial aid offices at each school. Schools may vary in the amount of financial aid that your student may receive.

Seek Out Free Money from Grants & Scholarships

Grants and scholarships can make a big difference in paying for your education. They’re considered a gift, which means the money doesn’t have to be paid back. They can come from a variety of sources: private employers, corporations, foundations and individuals. Additionally, some colleges and universities offer grants, scholarships and short-term loans, which are administered within the school. Seeking out grants and scholarships may require a time commitment on your part, but the reward could be well worth the effort.

*Note: See here for more information on scholarships available!

Grants

The Federal Pell Grant (PELL) and Federal Supplemental Education Opportunity Grant (FSEOG) assist undergraduate students with financial needs while attending any eligible public or private post-secondary school. Your student can get application forms for these grants from the university/college financial aid office.

Scholarships

Scholarships are often awarded for merit in academics, athletics or a particular field of study. Scholarships may also be awarded based on ethnic background, religious affiliation and special interests.